Oracle (ORCL) news that moved the stock

What happened

Microsoft is winding down a 2023 arrangement to rent AI computing capacity from Oracle, Bloomberg reported on Friday, November 6, citing people familiar with the matter. Microsoft decided not to renew the contract and has spent recent months switching off the rented capacity, which was originally used to power the AI-assisted version of Bing, because the Oracle servers run an older generation of Nvidia chips that no longer meet Microsoft's evolving needs. The full size of the deal was never disclosed and could not be determined. Oracle responded that demand for its AI infrastructure remains strong, including for earlier-generation GPUs, saying GPU capacity that came up for renewal in its fiscal first quarter was renewed or resold at about a 20% premium to prior long-term pricing. Bloomberg framed the move as part of a wider Microsoft reassessment of the more than $80 billion it has committed to renting capacity from outside cloud providers, including CoreWeave, Nscale and Nebius.

What happened

The AI-spending selloff extended into a third straight day of tech declines on Monday, November 2. The Nasdaq Composite fell 1.07% to 25,164.32 and the S&P 500 slipped 0.51% to 7,541.40, while the Dow Jones Industrial Average rose 0.41% to 51,983.98 — the only major index to finish higher. Technology was the worst sector at -2.66%, and the Philadelphia Semiconductor Index dropped 3.37%. Intel tumbled another 8.8% after its ~30% Friday collapse; Marvell Technology plunged 12.72% and Lumentum 18.59% as the market punished the $115B all-stock merger; Oracle sank 8.85% to $119.10 after filing a $20B stock-and-bond raise; Micron fell 5.7% and Seagate 8%.

What happened

Oracle filed with the SEC on Monday to raise $20 billion — $10 billion in new common stock (~76.5 million shares at Friday's $130.67 close) plus $10 billion in senior notes across six tranches maturing 2029–2046 — to fund its AI and cloud data-center buildout. The deals are independent of each other and proceeds are earmarked for 'general corporate purposes' including capex, debt repayment, acquisitions, dividends and buybacks. Shares fell 6–7% Monday. The timing stung: at last Wednesday's investor day Oracle had committed to limiting additional capital-markets funding through fiscal 2030 to exactly $20 billion — and has now used all of it in one transaction. The company carries ~$125B–$236B in consolidated debt (figures differ by measure) after already completing a $20B at-the-market stock sale earlier in FY27.

What happened

Media reports said Thursday that Microsoft is planning to raise at least $25 billion through a bond sale. The news reversed Microsoft's post-earnings rally — shares had been up 2.9% in premarket trading after a strong quarter but fell about 1.5% on Thursday as investors absorbed the debt-raise report. The sale would fund continued AI infrastructure spending even though the company kept capex in check this quarter. Trevor Slaven, global head of asset allocation at Barings, framed the market's unease: the AI buildout is 'increasingly debt financed,' which 'grows the potential economic profits over time' but 'creates more leverage and just creates a bit more risk in the system.'

What happened

Oracle shares surged about 12% on Wednesday to $146.11, on pace for their largest percentage gain since April 13, after the company laid out an ambitious long-term outlook at its financial analyst/investor day. Management forecast fiscal 2030 revenue of more than $225 billion — above the $217.7 billion analysts surveyed by FactSet expected — with an adjusted operating margin above 40% and adjusted earnings of more than $21 per share, implying roughly 35% annual revenue growth. CFO Hilary Maxson said Oracle expects free cash flow to turn positive in the second half of fiscal 2028 and exceed $30 billion in fiscal 2029, as capital spending declines, and that the company will limit additional capital raises to $20 billion through fiscal 2030 (excluding refinancing). Oracle also reaffirmed its fiscal 2027 forecast of more than $90 billion in revenue and adjusted earnings of $8.10 per share.

What happened

CoreWeave shares plunged over 15% Wednesday — the worst performer in the Nasdaq 100 — after a selloff in its corporate bonds pushed yields to distressed levels: its 9.625% notes due 2032 traded at $79.50 with the yield touching 15.06%, up from 13.42% at the start of October, while its 2031 and 2030 notes also fell sharply. The bond rout gained wide attention after venture capitalist Chamath Palihapitiya posted late Tuesday that the AI buildout is increasingly funded by debt with private credit playing a much bigger role, prompting Elon Musk to reply 'Yikes.' The Financial Times reported Wednesday that CoreWeave is courting life insurers' capital pools to fund its AI infrastructure spending. CEO Mike Intrator told staff the market is acting 'irrationally,' citing a $104.2B revenue backlog plus $25B+ in net new Q3 customer commitments. Oracle fell ~9% in the same session as investors questioned the funding of its $165B Project Jupiter data-center build amid negative free cash flow and a recent credit downgrade to BBB-, and Reuters reported CDS costs for Oracle and CoreWeave surged to record highs.

What happened

RBC reiterated its Outperform rating on Intuit (INTU) with a $385 price target, according to Ground News reporting surfaced October 9. The affirmation comes with Intuit trading near $304 — roughly 27% below RBC's target — after shares rallied 2.71% Thursday to $303.88, their fourth consecutive daily gain. The target sits below the 31-firm consensus of $431.55 but well above current levels, and it marks the most bullish fresh analyst signal on INTU since the September guidance fallout.

What happened

The Wall Street Journal reported that Broadcom has spent recent weeks working to arrange more than $50 billion in financing for the custom AI chip it is developing with OpenAI, with Apollo and Blackstone among the lenders approached. Separately, Oracle is in talks with Apollo and Goldman Sachs to fund a large chip purchase, likely through a separate entity that would buy the chips and lease them to Oracle. SpaceX has also spoken with lenders in recent days about a roughly $40 billion financing tied to Nvidia chips, first reported by the FT. Talks are at an early stage and deal sizes could change, but Broadcom and Oracle aim to close before year-end. Reuters' Thursday 'Open Interest' market piece highlighted these reports as the latest turn in the 'circular financing' wave in AI.

What happened

The Financial Times reported Wednesday (Sep 30), citing two people familiar with the matter, that Tencent has signed a five-year, roughly $7 billion lease with Oracle for about 100,000 advanced AI chips housed in Oracle data centers across Southeast Asia, with ~30% (~$2.1B) paid upfront. The chips — believed to be high-end Nvidia silicon not directly available for sale in China under U.S. export rules — never enter China; the arrangement exploits the gap that bars outright purchase but permits leasing compute capacity overseas. It is Tencent's largest-ever overseas lease agreement and already weighed on its free cash flow, producing Tencent's first negative quarterly cash flow in over a decade. Reuters carried the FT report the same day but said it could not independently verify the figures; neither Oracle nor Tencent commented. Oracle shares rose nearly 2% in premarket trading Thursday.

What happened

On Sept. 24, 2026, Bloomberg reported that Oracle had sent a force majeure notice to the developer of Project Jupiter, its massive AI data center campus in Doña Ana County, New Mexico (near Santa Teresa, ~1,400 acres, designed for 2.45 gigawatts). The notice — sent to Stack Infrastructure, a unit of Blue Owl Capital — seeks to preserve Oracle's right to defer rent payments for up to three years if the campus misses its planned 2028 opening (specifically a March 2028 target). Oracle shares fell about 4.4% to ~$138.15–$139.54 on Sept. 24 (volume 37.1 million shares, 1.23× average), more than $100 below the stock's 2026 peak of ~$248 in early June. Oracle said 'Project Jupiter remains on our planned schedule' and that such notices are 'commonplace in developments of this scale'; Blue Owl said the notice does not change financial commitments to the project.